Title
District Attorney's Office recommending the Board:
1) Adopt and authorize the Chair to sign Resolution 176-2026 authorizing the District Attorney to execute a Grant Award Agreement with the California Department of Insurance for the Workers' Compensation Insurance Fraud Program for Fiscal Year (FY) 2026-27 in the amount of $551,199, including any extensions or amendments thereafter which would not increase Net County Cost; and
2) Approve and authorize the Chair to sign a FY 2026-27 budget transfer adjusting estimated appropriations and revenue in the Workers’ Compensation Fraud Special Revenue Fund and the District Attorney’s Office General Fund to reflect the actual grant award. (4/5 vote required)
FUNDING: California Department of Insurance Grant Programs.
Body
DISCUSSION / BACKGROUND
The District Attorney's Office has received Workers' Compensation Insurance Fraud (WC) grant funding since Fiscal Year (FY) 2004-05, as administered by the California Department of Insurance (CDI), and remains committed to the investigation and prosecution of workers' compensation insurance fraud. The Office continues to strengthen partnerships with agencies working in this field and actively participates in public outreach to help reduce violations through employer and employee education.
The 2026-27 Workers’ Compensation Fraud award is $551,199, which is $17,623 less than the amount included in the FY 2026-27 Adopted Budget. A budget transfer is requested to reduce incoming revenue within the Special Revenue Fund. In accordance with grant requirements, the program must return any unspent grant funds from FY 2025-26 to CDI. The unaudited amount of unspent funds is $102,724, and it is anticipated that CDI will invoice the department for this amount, to be paid directly from the WC Special Revenue Fund.
For FY 2026-27, total available grant funding includes both the new award and interest earned in the prior year. Accordingly, the enclosed budget transfer adjusts total appropriations and revenue for the Workers’ Compensation Fraud Program to align with the updated grant total of $567,261.
The budget transfer also includes a request to use $165 from the department’s General Fund to reimburse the WC Special Revenue Fund for an outstanding discrepancy. This correction was originally submitted during FY 2025-26 but was not journaled, and therefore must be processed in the current FY 2026-27.
A signed resolution is required for the District Attorney to accept and execute the Grant Award Agreements with CDI. Approval of these recommendations will allow the District Attorney's Office to continue receiving funds that support its consumer protection efforts.
ALTERNATIVES
Should the Board opt not to approve and authorize the Chair to execute the enclosed resolution and budget transfer, the District Attorney’s Office will not be able to accept the FY 2026-27 CDI WC grant award.
PRIOR BOARD ACTION
Legistar file 25-1967 - December 9, 2025 - The Board approved the District Attorney’s Office to accept the FY 2025-26 CDI Automobile Fraud and Workers’ Compensation Fraud grant awards and executed associated proof of authority resolutions and budget transfer.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Auditor Controller Office
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no increase to Net County Cost. There is no matching requirement relative to this grant.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Return one certified copy of the resolution to Central Fiscal, Attention: Justene Cline; and
2) Obtain the Chair's signsure on the budget transfer
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Vern Pierson, District Attorney